FEATURED ARTICLES ABOUT SWARAJ MAZDA - PAGE 3

MUMBAI: A new story is unfolding in Swaraj Mazda (SML). Private equity investor Actis has questioned Sumitomo Corporation's move to hike shareholding in SML. Just when SML's Indian promoter, Punjab Tractors is considering selling a part of its 29%-odd shareholding in SML to Sumitomo — a move that would put the Japanese firm in the driver's seat at the light commercial vehicle manufacturer — Actis, which has substantial shareholdings in both...

MUMBAI: Actis, one of the most aggressive private equity players, is quietly moving in to take direct control of Swaraj Mazda, a light commercial vehicle manufacturer. Actis (formerly CDC Capital Partners), which indirectly owns a slice of Swaraj through Punjab Tractors, has picked up a sizeable amount of Swaraj shares in the secondary market, and is considering an open offer to get a firmer hold on the company. Punjab Tractors (PTL) owns 29.04% in Swaraj Mazda, and Actis had acquired 24% in PTL as part of the Punjab government's disinvestment exercise.

MUMBAI: Private equity firm Actis's bid to acquire a greater holding in Swaraj Mazda —maker of light commercial vehicles — may not have gone down well with some of the members of the company's board. At the board meeting last week, some directors, it is learnt, have expressed reservations about the private equity firm's plans to make an open offer for the company. In fact, the board meeting, which was convened to deliberate on the open offer, was inconclusive as some members felt that Actis would add little value by increasing its stake in the company.

MUMBAI | CHANDIGARH: Private equity fund Actis, one of the key shareholders with an 18% stake in light commercial vehicle major Swaraj Mazda (SML), is understood to have taken a decision to refrain from participating in the company's forthcoming rights issue, a decision which will result in Japanese trading giant Sumitomo becoming a dominant shareholder in the company post the issue. Sumitomo currently has just under 54% in the company. Actis is understood to have taken the decision on the premise that the value of its holding in SML may not appreciate significantly in a volatile stock market, an official close to the development said.

NEW DELHI: Swaraj Mazda on Friday asked its promoters Punjab Tractors Ltd (PTL) and Japan-based Sumitomo Corporation, who are locked in a legal tussle for control of the company at the Company Law Board, to resolve the issue through "arbitration". "Conflicting claims are being made by PTL and Sumitomo. Our view is that promoters should resolve their dispute through arbitration, following the provisions of their Joint Venture Agreement (JVA)," said senior counsel U K Chaudhary appearing on behalf of Swaraj Mazda.

NEW DELHI: Swaraj Mazda on Monday reported a net profit of Rs 21 crore during 2003-04 on the back of 27 per cent growth in vehicle sales, and firmed up a Rs 160 crore capital expenditure over the next three-four years. The company's total revenue increased 29 per cent to Rs 478.5 crore during the fiscal, a Swaraj Mazda release said here. During the January-March quarter, the company registered a 33 per cent growth in net profit to Rs 6.9 crore. The company's fourth quarter revenue jumped by 45 per cent to Rs 162.8 crore against the same quarter last year.

NEW DELHI: Private equity major Actis is likely to align with Mahindra & Mahindra (M&M) in the boardroom battle brewing at light commercial vehicle maker Swaraj Mazda (SML). M&M, indirectly through Punjab Tractors (PTL), and Actis together hold 32% in SML while Sumitomo of Japan owns 41%. Actis and PTL have been at loggerheads with SML for a while. M&M has stepped into the picture as a result of its takeover of PTL a few months ago. The decision of the SML board to float a Rs 120-crore rights issue has triggered off a fresh round of hostilities.

MUMBAI: Swaraj Mazda has initiated a restructuring and expansion plan to cash in on the upswing in the domestic commercial vehicle market. The company plans to invest Rs 120 crore by way of capital expenditure to raise production over the next three years from 8,000 vehicles a year to about 15,000 in a single shift. The Rs 120-crore capex is being funded via debt and internal accruals. The company is broadbasing its product range by introducing 10 new models/variants of goods and passenger carriers over the next two years.

MUMBAI: Swaraj Mazda has initiated a restructuring and expansion plan to cash in on the upswing in the domestic commercial vehicle market. The company plans to invest Rs 120 crore by way of capital expenditure to raise production over the next three years from 8,000 vehicles a year to about 15,000 in a single shift. The Rs 120-crore capex is being funded via debt and internal accruals. The company is broadbasing its product range by introducing 10 new models/variants of goods and passenger carriers over the next two years.

NEW DELHI: Eyeing the burgeoning demand for commercial vehicles and buses in the country, the Punjab-based Swaraj Mazda is driving home a massive expansion plan. The firm has earmarked an investment of Rs 160 crore over the next three years for expanding its production capacity besides setting up manufacturing facilities for transmission gears and bus bodies. Promoted up by the Punjab government and now controlled by Commonwealth Development Coporation (CDC), Swaraj Mazda intends to fund the entire capital investment through internal accruals.